COMPARE · Reviewed August 3, 2026
MELI vs PDD
Verdict: Side-by-side breakdown using the Bull Rankings model. MELI scored 79.2, PDD scored 69.8 — MELI leads.
Compare another set
Different reporting periods. MELI's fundamentals are as of March 2026, but PDD's are as of December 2025 — a 3-month gap. Growth, margin and valuation figures below therefore describe different windows and aren't strictly like-for-like.
MELI
MercadoLibre, Inc.
79.2
$1,872.60 · $94.9B
fundamentals as of
Score gap
9.4
MELI leads
PDD
PDD Holdings Inc.
69.8
$90.93 · $129.4B
fundamentals as of
The model, pillar by pillar (0–100 each)
MELI
stronger →← stronger
PDD
77
Qualityreturns · margins · balance sheet
89
100
Growthrevenue & earnings expansion
87
65
Valuevaluation vs sector peers
79
PDD is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
MELI
PDD
$11.8bA-
FCF
$15.8bA-
+36.4%A
Rev
+9.7%B
1.70C+
D/E
0.01A
48.8xD
P/E
9.4xA
1.16B+
PEG
0.82B+
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
MELI
PDD
57% below
Price vs fair valuelower is cheaper
62% below
~-7%/yr
Growth the price implies10-yr FCF · lower = less priced in
~-11%/yr
+79%
1-yr DCF upside
+111%
+133%
5-yr DCF upside
+165%
+242%
10-yr DCF upside
+270%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
MELI
Why this score
- Durable high returns
PDD
Why this score
- Durable high returns
- Foreign reporter (CNY)
The companies
MELIMercadoLibre, Inc.
Why now
Internet Retail · market cap $94.9b. Down 27% from 52-week high of $2548.50 — deep drawdown territory. Revenue growing +36% — in hypergrowth territory. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $2,215 (implying +18% upside).
Moat
ROE 26% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $94.9b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 49x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
PDDPDD Holdings Inc.
Why now
Internet Retail · market cap $129.4b. Down 35% from 52-week high of $139.41 — deep drawdown territory. PEG 0.82 — paying under fair value for the growth rate. 34 sell-side analysts rate this a Buy with a mean 1-yr target of $116.45 (implying +28% upside).
Moat
Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 24% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 112% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 35% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.